Posted by ryan on April 09, 2004 at 13:39:16:
Everything is negotiable in a preforeclosure situation. Most of the time the person is pre-foreclosure does not have the cash to pay back payments or fee’s otherwise they probably would not be in this situation. If you can get them to pay the back payments and sell you the house subject to the existing financing more power to you. I assume you are trying to take over the loan based on your description of the situation. I would only pay back payments if there is a decent amount of equity in the property, or it cash flows as-is. I would do some definite number crunching if it does not have equity and you want to bring it current. Determine if insurance and taxes are escrowed. Most likely you will want to buy your own policy. There are a lot of factors to consider when taking over a mortage.
When I find pre-foreclosure if there is not equity I usually try to get the mortgage discounted.
Just something to consider. Most title- companies will not close the deal if you are taking the mortgage subject-to without the lenders knowledge. You may have to ask a realestate attorney to do the closing so I would look into as soon as possible.